Lettings Market Update – following the King’s Speech

The Kings Speech read 17^th July included a myriad of new Bills that the Labour government plan to introduce to parliament over the coming months, including the legislative push on the Private Rental Sector that was expected from the Manifesto.

Named Renters Rights Bill, the King announced it would give “greater rights and protections to people renting their homes, including ending ‘no fault’ evictions and reforming grounds for possession”

Since the Kings brief announcement, Number 10 have added flesh to the bones by stating

“The Government is determined to address the insecurity and injustice that far too many renters experience by fundamentally reforming the private rented sector and improving the quality of housing in it. We value the contribution made by responsible landlords who provide quality homes to their tenants and believe they must enjoy robust grounds for possession where there is good reason to take their property back.

However, the Government is determined to level decisively the playing field between landlord and tenant by providing renters with greater security, rights and protections and cracking down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against tenants with bad practices such as unfair rent increases intended to force tenants out, and pitting renters against each other in bidding wars.

The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions – we will take action where the previous Government has failed. The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”

They aim to:

• Abolish section 21 notices for eviction
• Strengthen tenant rights and protection including empowering tenants to challenge arbitrary rent increases and end rental bidding wars
• Give tenants the right to request a pet which landlords must consider and cannot unreasonably refuse. They will introduce a landlords right to request insurance to cover potential damage.
• Applying the Decent Homes Standard which already covers social housing, to the private rental sector.
• Applying Awaabs Law to the sector outlining clear timelines for a landlord to deal with serious hazards.
• Create a digital private rental sector database
• Supporting quicker, cheaper resolution for disputes, including a new ombudsman service
• Make it illegal for landlords to discriminate against tenants in receipt of housing benefits, or with children
• Strengthening local council enforcement powers

The announcement hasn’t come as a surprise to the industry, as much of this was outlined in the Manifesto, and includes proposals laid out in the fallen Renters (Reform) Bill.

As with any new legislation, the draft Bill will go through consultation before being introduced to parliament formally.

Our membership with ARLA Propertymark ensures our voices and the voices of our landlords will be heard throughout this process.

Contact our lettings team if you are seeking any advice on the recent updates and what they mean for your rental portfolio.

Call us on 0800 152 2986 or email lettings@johngerman.co.uk